Record 55

 Record 55.000 expenditure in the horror stort model throach of the following independerit assumptions EB 17A Equity Revenue Cash Flow Net Income Expense Common Stock Retained Eaming 21,000 40,000 4) The expenditure was for routine maintenance 5 6 Assets Book T Event Cash Compressor 0 9 Beginning Balance 45.000 16 000 10 Routine Maintenance 11 12 13 14) The expenditure edended the compressors 15 16 Book Value o TT Ent Cash Compressor 10 19 Beginning Balance 15.000 16,000 20 Exdandide 21 22 Equity Revento Common Stock Expense Not Income Cash Flow Rendang 21000 40,000 24 (c) The expenditure improved the compressors opening capacity Euty Revenue Expense Net Income Cash Flow Assets Book Value of Compressor Cash Common Stock Retained Earning 27 Event 20 29 Beginning Bulance 30 Oputing Capacity 16,000 40,000 21,000 32 33 34 35 30
Sok value should appear on the balance sheet for the tow truck and the building? Exercise 8-17A Effect of revenue expenditures versus capital expenditures on financial statements Sellers Construction Company purchased a compressor for $28.000 cash. It had an estimated useful life of four years and a $4,000 salvage value. At the beginning of the third year of use, the company spent an additional $6.000 related to the equipment. The company's financial condition just prior to this expenditure is shown in the following statements model: Assets Equity Rev. Exp. Cash + Book Value of Compressor = Com. Stk. + Ret. Earn. 45,000 + 16,000 40,000 + 21,000 NA NA Required Record the $6,000 expenditure in the statements model under each of the following independent assumptions: 2. The expenditure was for routine maintenance. The expenditure extended the compressor's life. The expenditure improved the compressor's operating capacity.